AI Predicts Avalanche (AVAX) Price for the Start of 2025: +550% Surge in the Cards

AI Predicts Avalanche (AVAX) Price for the Start of 2025: +550% Surge in the Cards

 Key highlights:

  • Avalanche is on fire – TVL grew 5x in the last year to over $800 million, making it the 6th largest DeFi chain.
  • Adoption exploded with the price rallying 200% and new projects flocking to its fast and affordable network.
  • With its thriving developer community and major funding to fuel even more growth, the model predicts AVAX will hit $70 by next spring and then a sky-high $200 by early 2025 for a juicy 550% return.

Avalanche has emerged as one of the leading smart contract platforms in the crypto space. Powered by the fast, low-cost, and eco-friendly Avalanche Consensus, AVAX has seen tremendous growth over the past year and currently sits as the sixth-largest DeFi chain according to data from DeFiLlama. Recently, an AI-powered price prediction model has forecast a spectacular +550% AVAX price increase from its current levels which would see the token reach well over $200 by early 2025.

Let’s take a closer look at some of the factors that have contributed to Avalanche’s success so far and explore what the future may hold for AVAX over the next two years according to this bold AI prediction.

image showing bold AI prediction

Image source: DefiLlama

Avalanche’s explosive growth in 2023

AVAX traded around 10 dollars into 2023 after experiencing price declines for most of 2022. However, what happened over the past 12 months has surprised even the biggest Avalanche bulls. Some key highlights of AVAX’s performance so far:

  • TVL on Avalanche surged from approx. $485 million to nearly $828 million currently, making it the 6th largest DeFi chain.
  • Over 100 million Avalanche inscriptions have been generated since their creation last year.
  • AVAX’s price increased by nearly +200% from November to February, outperforming every other top 15 cryptocurrency.
  • In November, the Avalanche Foundation announced a $100 million fund dedicated to supporting the AVAX ecosystem and meme coins.
  • Over 1,700 validators now secure the Avalanche network, setting a new ATH in decentralization.
  • Grayscale recently added AVAX to its Smart Contract platform basket while also dropping MATIC in funds rebalance.

This explosive growth has seen Avalanche emerge as a leading smart contract platform and shows no signs of slowing down based on recent developments. Let’s now explore the specifics of this bold AI forecast.

AI predicts +550% AVAX price increase to $223 by early 2025

CoinCodex utilizes a sophisticated AI model that analyzes multiple on-chain metrics, order book flows, social analytics, and historical price data to generate cryptocurrency price predictions. According to its model, here is Avalanche’s forecast over the next 1 year:

  • By May 2024, AVAX is predicted to reach $70, representing a very healthy +100% gain from current levels.
  • However, the model sees stronger upside potential, forecasting AVAX to surge past $200 by early 2025 for over +550% price appreciation total.
  • This would put AVAX amongst the top-performing major cryptocurrencies over the next two bull market cycles based on previous metrics.
TimeframePredicted AVAX PricePercent Change
Current (Feb 2024)$36
3 Months (May 2024)$70+100%
Early 2025$236+550%

Artificial intelligence currently views Avalanche as one of the most promising smart contract platforms with 6x return potential within the next couple of years. But how realistic is a $200+ AVAX? Let’s examine some factors that could drive this forecast.

Continued ecosystem expansion

A major driver of Avalanche’s success has been its thriving developer community. The recent $10 million grant from Colony Lab and $100 million memecoin fund from the Avalanche Foundation are aiming to turbocharge this growth. Recent data points include:

  • Over 5,000 smart contracts currently deployed on Avalanche according to DappRadar.
  • Major applications like Trader Joe, Benqi, and GMX have emerged.
  • Established projects like MakerDAO, Uniswap, and Aave are building on AVAX.
  • NFT projects are flocking to Avalanche with over $1 billion in total volume to date.
  • The Sui network recently launched its cross-chain Abracadabra Money on Avalanche.

This rapid ecosystem expansion shows no signs of slowing and will be a major force drawing new users and investors to AVAX fueling its price potential in the coming years.

Upside from vested token unlocks

Nearly $900 million worth of tokens from various projects including Avalanche are scheduled to unlock in February. While this might add temporary selling pressure, projects invest the majority of these tokens back into further development:

Avalanche’s 9.5 million AVAX unlock worth $320 million will mainly go to the foundation and strategic partners to expand the network.

Over $180 million of Aptos’ unlock will be reinvested in core contributors and investors, further developing the ecosystem.

So in the long run, these unlocks help to supercharge growth and adoption by allowing projects to attract top talent and double down on infrastructure. This bodes extremely well for AVAX’s price potential.

Avalanche’s thriving ecosystem supported by ongoing funding raises the prospects of realizing the $200+ price prediction within the next year according to this AI model. But competition in the smart contract space remains fierce – can AVAX continue to outperform?

Outshining rivals with superior technology

While Ethereum still dominates in terms of overall TVL and name recognition, newer Layer 1 platforms like Solana, Cardano, and Polkadot have also gained significant traction. For Avalanche to fulfill its $200+ potential, it will need to continue differentiating itself from these competitors. Some key advantages include:

  • Avalanche Consensus’ sub-second finality and 4,500+ TPS throughput outclasse popular Layer 1 networks.
  • Near zero fees of <$0.01 per transaction make it an economically viable platform for both large institutions and individual users.
  • Avalanche’s Core Settled Subnets allow for isolated smart contract platforms to run independently and securely under the umbrella of the AVAX ecosystem.
  • The launch of Besu-compatible EVM and native Moonbeam support further reduces friction for projects to migrate over from ETH.

While competitive threats remain, Avalanche has proven itself as one of the leading Layer 1 platforms based on innovation, speed, scalability, and affordability. As more developers leverage its superior technology, AVAX’s growth should continue outpacing rivals providing fuel for its $200 price target.

The bottom line: After a 200% rally, AI sees Avalanche’s success just getting started with a $200+ price

Avalanche has established itself as one of the most promising smart contract ecosystems in crypto through explosive growth during 2021. CoinCodex AI price model now forecasts the prospect of AVAX reaching over $200 within the next year, representing a spectacular +550% gain from current levels. Strong upside potential appears justified based on Avalanche’s thriving developer community, major funding initiatives, and superior technology compared to competing networks.

While macro conditions and competitive risks remain, Avalanche’s combination of execution, innovation, and expanding ecosystem make it well-positioned to potentially deliver life-changing gains for early investors as predicted by artificial intelligence analysis. Avalanche remains one of the most undervalued top cryptocurrencies with massive upside potential still ahead over the next 12-24 months according to this bold AI forecast.

The same AI price prediction model also predicts strong gains for Cardano (ADA), Render Token (RNDR), and Internet Computer (ICP), while predicting a price drop in Bitcoin following the halving.

Source: https://coincodex.com/article/37420/ai-predicts-avalanche-avax-price-for-the-start-of-2025-550-surge-in-the-cards/